Tesla American Company Concerned With Auto Making

This is a fundamental research, sector based assignment where you will select a company whose publicly traded shares your team concludes should be bought.  You will need to examine the financials of any company you select, in particular profitability, cash flow, innovation, operating margins and the management team.

The primary objective of this project is to see whether your company is undervalued vs. its sector and what are the engines of growth for your choice. 

Using a publicly traded company of your choosing, please provide the following:

1.  Explain, in full detail, why this company should be purchased.
2. Describe the sector that your company is in, who are its primary competitors and what are the driving forces of growth?
3. How is your company viewed by the research community on Wall Street?
4. How has your company performed over the past five years?  Vs. the S and P 500 index?  Vs. its competitors? (Chart this and explain)
5. How has and will the macroeconomic environment affect your company?  If so, how?
6. What is your company’s fundamental strategy and are they maximizing shareholder value?
7. Is your company affected by externalities, such as being correlated to the price of commodities, consumer spending, specific foreign countries’ economies, regulation or any other specific variable? 
8. What, if any, is the company’s dividend policy?  Do they have sufficient profitability of cash flow to service the dividend?
9. If your selected company is in an innovation oriented sector, are they being innovative enough to stay with or surpass their competition? Discuss new or promising products.

10.  If the company has debt, do they have sufficient cash flow to service it?  Explain.

11.  Please chart all relevant ratios and other financials vs. the sector and explain their importance. 

12.  Please write this report as if it is going to be presented to a group of potential investors. So it should be professional in its presentation, including the writing and its look, highlighting the strong points of your paper and it MUST have a conclusion/summary.

Rules:

1. Each group must pick a different company.
2. 8 to 10 pages, double spaced.
3. Paper should include charts but no more than 20% of paper.
4. All sources must be accredited accordingly.  This can be done by adding a back page.  This is not included in the 8 to 10 pages. 
5. All companies must be approved by me in advance since there will be no duplication of choices.
6. Structure, grammar, punctuation and professionalism all matter.